Our Stock of the Week is AYRO, Inc. (AYRO) Texas-based AYRO, Inc., designs and delivers compact, emissions-free electric fleet solutions for use within urban and short-haul markets. Capable of accommodating a broad range of commercial and consumer requirements, AYRO’s vehicles are the emerging leaders of safe, affordable, efficient, and sustainable logistical transportation.
AYRO recently went public through a reverse merger with a company called DropCar. The DropCar business has been sold, and the new entity is essentially an IPO of the AYRO business.
Rod Keller, Ayro’s CEO, said in a letter about the merger, “In the next phase of our business, we want to expand to Europe, Middle East, and Africa and increase the number of EV solutions in our product portfolio. For this reason, we chose to pursue a public offering…” “One unique difference at AYRO is we focus on building electric vehicles for specific applications where customers don’t need all the features of a traditional automobile. Because we start with understanding the needs of the application, we often deliver up to a 50% reduction in operating expenses while reducing CO2 emissions by 67%.”
AYRO’s clients include Club Car, a subsidiary of Ingersoll-Rand and a major supplier of maintenance utility vehicles to universities. Keller noted, “Universities, distribution centers, warehouses, last-mile delivery, and large business campuses are just a few of the applications for AYRO vehicles. In American universities alone it is believed there are more than 500,000 maintenance vehicles being transitioned from gas to electric over the next five years.”
Further information about the company can be found on its website.
At this point, AYRO is largely a story stock. There is no analyst coverage or estimates, and financial information is very limited. However, due to the intense interest in electric vehicle stocks such as TSLA, WKHS, SHLL, and SOLO, we believe that investors and traders will soon discover this stock and its interesting story.
Technically, the stock is starting to regroup after the completion of the reverse merger and moved sharply higher this past Friday on very high volume. We will be looking for a continuation of the interest.
As always we would not chase a large gap up open on Monday morning but would look to add to positions on pullbacks or after the development of an intraday trading range. This is a low-priced, small-cap stock that is very risky and volatile.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, employees, and affiliates of Shark Asset Management, Inc. ("SAMI"), directly or indirectly, controlled investment and/or trading accounts containing positions in AYRO. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.